New Zealand has been celebrating Labour Day for more than 120 years.
Held on the fourth Monday in October each year, the public holiday commemorates efforts to make eight hours the standard working day.
This year, New Zealand’s workers are waiting to see what changes might be in store for them now that a National-led government is about to be back in power. What can they likely expect?
As NZ celebrates Labour Day – we look at what the new government will likely have in store for workers.
An end to fair pay agreements
The Labour government ushered in fair pay agreements last year, in what it labelled a “historic day for everyday workers”.
The law allowed for binding agreements on minimum employment terms for all employees at an industry-wide level.
National and ACT each opposed the law at the time, saying it was “compulsory unionism” that harmed productivity. Both parties promised to repeal the law if elected.
Now some employers seem to think fair pay agreements are already over, according to barrister and constitutional law expert Mai Chen.
“Clients of mine are saying ‘oh, it’s alright now, National's come in, I'm not doing fair pay agreements,’” she told 1News last week.
Chen said any change to fair pay agreements is likely still months away.
“And until that happens, we have to continue to comply with the law as it is.”
A return to the 90-day trials of old
John Key’s National government brought in 90-day work trials which allowed businesses to fire staff within the first 90 days of employment without having to give a reason and without having to face legal action for unfair dismissal.
Jacinda Ardern’s Labour government curbed that law, offering greater protections for employees in larger businesses, but keeping the 90-day trial in place for businesses with fewer than 20 staff.
National said it would return the 90-day trials to the old settings, saying employers would be more likely to hire people.
A Treasury-commissioned study in 2016 found 90-day trials did not help jobseekers and did not boost employment numbers.
A potential reduction in sick leave?
Mandatory sick leave entitlements doubled from five to 10 days in 2021.
ACT wants to reverse that, however, National has previously said it has no plans to do so.
Changes to paid parental leave
National has pledged to change New Zealand’s parental leave laws, so parents can have more flexibility about when they take that leave.
Currently, paid parental leave can be shared between parents – but the parents can’t take this leave at the same time.
The Labour government voted against a National Party bill to implement this change earlier this year. Every other party in Parliament was in favour of it.
At the time, National’s deputy leader Nicola Willis said Labour was “out of touch” and that the bill would progress within a National government’s first 100 days.
National’s 100-day plan doesn’t currently include movements on paid parental leave, but those changes are likely still on the cards.
A potential lift in the retirement age
New Zealanders could eventually be working for longer before qualifying for superannuation under National and ACT.
Both parties say it makes financial sense given the country’s ageing population and the costs that come with that.
In 2021, Treasury warned New Zealand’s debt levels were on an “unsustainable trajectory” thanks to the ageing population.
But Te Ara Ahunga Ora Retirement Commission said last year that raising the pension age would further disadvantage Māori and Pasifika people who already have shorter life spans.
National plans to keep the pension age at 65 until 2044, when it would gradually lift to 67. ACT wants to make that change much faster.
However, if National and ACT need to enter a coalition with New Zealand First they would likely find strong resistance to raising the retirement age.
New Zealand First’s election manifesto states: “The age of retirement will remain at 65 years. No ifs, buts, or maybes.”
So those plans may have to go on the back boiler for now.
One less public holiday? (Although probably not)
The ACT Party has said it would get rid of the public holiday on January 2 to “help small [businesses] absorb the cost of Matariki”.
Prime Minister-elect Christopher Luxon also once made noises about getting rid of Labour Day when the Matariki public holiday was first enacted, but has since said National “ain’t unwinding a public holiday”.
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